Biomagnetics Receives First Order for Plastic Film – Initial Order Exceeds $2 million

Biomagnetics Diagnostics Corp., (PINK SHEETS:BMGP - News) a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis and malaria detection, and other innovative technologies, today announced its has received its first order for plastic film to be manufactured by the recently acquired Lanzhou Sunshine New Technology Development Ltd. The initial order, which has been placed by an agricultural cooperatives, is valued in excess of $2 million, but is expected to grow significantly as manufacturing capabilities increase and as the Company acquires additional credit.

In July of 2010, Biomagnetics acquired all assets of Lanzhou New Sunshine Plastic Manufacturing facility. In addition to the assets of Lanzhou, Biomagnetics will inherit an ongoing contract for plastic film products for a minimum of two years. This initial order will represent the first shipment against this contract.

“We are very excited to announce this significant event in the life of our Company. Whereas we have decided to spin off the recently acquired bio-fuel assets, we plan to operate Lanzhou in order to capitalize on the significant demand that exists within China as its economy continues to boom,” commented Clayton Hardman, CEO of Biomagnetics. “I will be spending this week in China to secure the letters of credit that we need to expand upon this initial contract. We believe pending orders are several times the magnitude of this initial order.”

About Biomagnetics Diagnostics Corp.

Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company and also has a growing list of valuable Chinese manufacturing assets and technologies. The Company is currently developing a waveguide-based advanced integrated optical biosensor through its cooperative research and development agreement with Los Alamos National Security, LLC, which will initially be used for cholera, tuberculosis and malaria diagnosis. More information on Biomagnetics Diagnostics Corp. can be seen at www.biomagneticsbmgp.com.